Nova Scotia LIRA Addendum (Pension Benefits Regulations)

CLIENT NAME: __________________________________________________________________________________________________________

Note: This document is Schedule 3 to the Pension Benefits Regulations (Nova Scotia). It forms part of the regulations and must be read, construed and interpreted inconjunction with the Pension Benefits Act and its regulations.

1. Definitions for this Schedule

In this Schedule,

“Act” means the Pension Benefits Act;

“domestic contract”, as defined in Section 2 of the regulations, means awritten agreement referred to in and for the purpose of Section 74 of the Actor Section 14 of the Pooled Registered Pension Plans Act, that provides for adivision between spouses of any pension benefit, deferred pension, pension,LIRA or LIF, and includes a marriage contract as defined in the MatrimonialProperty Act;Definition of “domestic contract” amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

“federal Income Tax Act”, as defined in Section 2 of the regulations, meansthe Income Tax Act (Canada) and, unless specified otherwise, includes theregulations made under that Act;

“owner” means any of the following persons, as set out in subsection 200(2)of the regulations, who has purchased a LIRA:

(i) a former member who is entitled to make a transfer under clause 61(1)(b)of the Act,

(ii) a spouse of a person who was a member, and who is entitled to maketransfer under clause 61(1)(b) of the Act,

(iii) a person who has previously transferred an amount under clause 61(1)(b)of the Act into a LIRA or LIF,

(iv) a person who has previously transferred an amount into a LIRA as a resultof a division of any pension benefit, deferred pension or pension underSection 74 of the Act,

(v) a spouse who is entitled to transfer a lump sum as a result of a divisionof any pension benefit, deferred pension or pension under Section 74 ofthe Act,

(vi) if the funds in the account of a pooled registered pension plan are usedfor the purchase, a person who transfers the amount in accordance withthe Pooled Registered Pension Plans Act and the Pooled RegisteredPension Plans Regulations;

Subclause (vi) of definition of “owner” added: O.I.C. 2016-111, N.S. Reg. 89/2016.

“regulations” means the Pension Benefits Regulations made under the Act;

“spouse”, as defined in the Act, means either of 2 persons who

(i) are married to each other,

(ii) are married to each other by a marriage that is voidable and has notbeen annulled by a declaration of nullity,

(iii) have gone through a form of marriage with each other, in good faith,that is void and are cohabiting or, if they have ceased to cohabit, havecohabited within the 12-month period immediately preceding the dateof entitlement,

(iv) are domestic partners within the meaning of Section 52 of the VitalStatistics Act, or

(v) not being married to each other, are cohabiting in a conjugal relationshipwith each other, and have done so continuously for at least

(A) 3 years, if either of them is married, or

(B) 1 year, if neither of them is married.

“Superintendent”, means the Superintendent of Pensions, as defined in theAct;

Note Re Requirements of the Pension Benefits Act and Regulations and the Pooled Registered Pension Plans Act and its regulations

Prohibitions on transactions from Section 91 of ActUnder Section 91 of the Act and Section 12 of the Pooled Registered PensionPlans Act, money held in a LIRA must not be commuted or surrendered inwhole or in part except as permitted by this Schedule and the regulationsincluding, without limiting the generality of the foregoing, the followingSections of the regulations:

• Sections 211 through 230, respecting withdrawal in circumstances offinancial hardship.

• Section 231, respecting withdrawal in circumstances of considerablyshortened life expectancy.

• Section 232, respecting withdrawal in circumstances of non-residency.

• Section 233, respecting withdrawal of small amounts at age 65.

• Section 198, respecting the transfer of an excess amount, as defined in thatSection.

Pursuant to subsection 91(2) of the Act and subsection 12(2) of the PooledRegistered Pension Plans Act, any transaction that contravenes Section 91 ofthe Act or Section 12 of the Pooled Registered Pension Plans Act is void.

Value of assets in LIRA subject to divisionThe value of the assets in a LIRA is subject to division in accordance with all ofthe following:

• an order of the Supreme Court of Nova Scotia that provides for a divisionof a pension benefit, deferred pension or pension under Section 74 of theAct, or a division of the funds in a pooled registered pension plan accountunder Section 14 of the Pooled Registered Pension Plans Act.

• a domestic contract that provides for the division of a pension benefit,deferred pension or pension under Section 74 of the Act, or a division ofthe funds in a pooled registered pension plan account under Section 14 ofthe Pooled Registered Pension Plans Act.

• the regulations.

Money held in LIRAThe following requirements are set out in the Pension Benefits Act and areapplicable to LIRAs governed by this Schedule:

• Money held in a LIRA must not be assigned, charged, or given as securityexcept as permitted by subsection 88(3) of the Act, Section 90 of the Act,subsection 12(3) of the Pooled Registered Pension Plans Act or Section 13 ofthe Pooled Registered Pension Plans Act, and any transaction purporting toassign, charge, anticipate or give the money in the LIRA as security is void.

• Money held in a LIRA is exempt from execution, seizure or attachmentexcept for the purpose of enforcing a maintenance order as permitted by Section 90 of the Act or Section 13 of the Pooled Registered PensionPlans Act.

Section 1, table amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

Account No.___________________________________

2. Transferring assets from LIRAs(1) An owner of a LIRA may transfer all or part of the assets in the LIRA to

any of the following:(a) the pension fund of a pension plan registered under the pension

benefits legislation in any Canadian jurisdiction or to the pensionfund of a pension plan provided by a government in Canada;

(b) a LIRA held by another financial institution;

(c) a LIF;

(d) a life annuity;

(e) a pooled registered pension plan.Clause 2(1)(e) added: O.I.C. 2016-111, N.S. Reg. 89/2016.

(2) The date of a transfer under subsection (1) must not be later than 30 daysafter the owner requests it, unless any of the following apply:

(a) the financial institution providing the LIRA does not have all theinformation necessary to complete the transaction, in which casethe 30-day period begins to run from the date the financialinstitution has all the necessary information;

(b) the transfer is in respect of assets held as securities whose term ofinvestment extends beyond the 30-day period.

(3) If assets in a LIRA consist of identifiable and transferable securities, thefinancial institution providing the LIRA may transfer the securities withthe consent of the owner of the LIRA.

(4) A financial institution providing a LIRA must advise the financialinstitution to which the assets of the LIRA are transferred

(a) that the assets were held in a LIRA in the current year; and

(b) whether the assets were determined in a manner that differentiatedon the basis of sex.

3. Information to be provided by financial institution on transfers of assets ofLIRAsIf the assets in a LIRA are transferred, the financial institution providing theLIRA must give the owner the information required by Section 4 of thisSchedule, determined as of the date of the transfer.

4. Information to be provided annually by financial institutionAt the beginning of each fiscal year of a LIRA, a financial institution providingthe LIRA must provide all of the following information to the owner abouttheir LIRA as of the end of the previous fiscal year:

(a) with respect to the previous fiscal year,(i) the sums deposited,(ii) any accumulated investment earnings, including any unrealized

capital gains or losses,(iii) the payments made out of the LIRA,(iv) any withdrawals from the LIRA,(v) the fees charged against the LIRA;

(b) the value of the assets in the LIRA at the beginning of the fiscal year ofthe LIRA.

5. Death benefits(1) If the owner of a LIRA dies, the following are entitled to receive a benefit

equal to the value of the assets in the LIRA, subject to subsections (4)and (5):(a) the owner’s spouse;(b) if there is no spouse or if the spouse is disentitled under subsection

(4) or (5), the owner’s named beneficiary;

(c) if there is no named beneficiary, the personal representative of theowner’s estate.

(2) For the purposes of subsection (1), a determination as to whether anowner of a LIRA has a spouse must be made as of the date the ownerdies.

(3) For the purposes of subsection (1), the value of the assets in a LIRAincludes all accumulated investment earnings, including any unrealizedcapital gains and losses, of the LIRA from the date of death until the dateof payment.

(4) A spouse is not entitled to receive the value of the assets in a LIRA underclause (1)(a) if the owner of the LIRA was not

(a) a member or former member of a pension plan from which theassets were transferred, directly or indirectly, to purchase the LIRA;or

(b) a member of a pooled registered pension plan from which the assetswere transferred, directly or indirectly, to purchase the LIRA.

Subsection 5(4) replaced: O.I.C. 2016-111, N.S. Reg. 89/2016.

(5) A spouse who is living separate and apart from the owner of a LIRAwithout a reasonable prospect of resuming cohabitation on the date theowner dies is not entitled to receive the value of the assets in the LIRAunder clause (1)(a) if any of the following conditions apply:

(a) the spouse delivered a written waiver to the financial institution inaccordance with Section 6 of this Schedule;

(b) the spouse is not entitled to receive any amount in respect of theassets in the LIRA in accordance with the terms of a domesticcontract that provides for the division of any pension benefit,deferred pension or pension under Section 74 of the Act or the fundsin a pooled registered pension plan account under subsection 14(2)of the Pooled Registered Pension Plans Act;

Clause 5(5)(b) amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

(c) the spouse is not entitled to receive any amount in respect of theassets in the LIRA in accordance with a court order respecting adivision of a pension benefit, deferred pension or pension underSection 74 of the Act or the funds in a pooled registered pensionplan account under subsection 14(2) of the Pooled RegisteredPension Plans Act.

Clause 5(5)(c) amended: O.I.C. 2016-111, N.S. Reg. 89/2016.

(6) The benefit described in subsection (1) may be transferred to a registeredretirement savings arrangement in accordance with the federal IncomeTax Act.

6. Waiver of entitlement to death benefits by spouse(1) A spouse of an owner of a LIRA may waive their entitlement to

receive a benefit described in Section 5 of this Schedule from the LIRA, by delivering, any time before the death of the owner, a writtenwaiver in an approved form to the financial institution providing the LIRA.

(2) A spouse who delivers a waiver under subsection (1) may cancel it bydelivering a written and signed notice of cancellation to the financialinstitution before the date the owner of the LIRA dies.

7. Information to be provided by financial institution on death of ownerIf the owner of LIRA dies, the financial institution providing the LIRA must givethe information required by Section 4 of this Schedule, determined as of thedate of the owner’s death, to any person who is entitled to receive the assetsin the LIRA under subsection 5(1) of this Schedule.

Plan Issuer:Community Trust Company ________________________________________________________________

Full Name of Plan Holder

_________________________________________________________________ ________________________________________________________________Signature of Authorized Person Signature of Plan Holder

_________________________________________________________________ ________________________________________________________________Date Date